479
F.2d 638.
Facts: A subcontractor, Coastal,
starting doing work for a primary contractor, Blair. Blair refused to make certain payments and
Coastal stopped work. The subcontractor
brought suit against the primary contractor to recover for the services
rendered.
Issue: Can a subcontractor recover
damages for services rendered when the primary contractor breaches a contract
even if the subcontractor would have lost money if they had completed the
contract?
Rule: If expectation damages are
insufficient to cover the plaintiff’s losses, the plaintiff may substitute
reliance damages.
Analysis: Coastal is entitled to
damages for services rendered because Blair has benefited from Coastal’s
loss. The damages should be measured by
the replacement value of the labor and equipment provided by Coastal.
Conclusion: The case was reversed and
remanded to find out how much the services that Coastal rendered were worth.
Back to Reliance and Restitution